Payroll
Payroll in TaxMTD covers the day to day of employing people in a small company: employees, pay runs, payslips, the year end forms, workplace pension duties, and the director salary and dividend decisions that go with them.
Find it under Payroll in the sidebar (Business plan and above).
Employees#
Add each employee with their tax code, National Insurance category, pay frequency and start date. The employee card shows year to date pay, tax and NI, and holds the documents generated for them.
Pay runs#
- Click New Payroll Run, pick the pay period and the employees to include.
- Enter gross pay, overtime, bonuses or deductions for the period.
- TaxMTD works out PAYE, employee and employer National Insurance, student loan and pension contributions using the current year tables.
- Review and confirm. Payslips are generated for every employee in the run and the run appears in Payroll History.
RTI preview#
Every confirmed run produces a Full Payment Submission (FPS) preview: the employee records HMRC will receive, in the order HMRC expects them. Use it to check the figures before the submission deadline (on or before pay day).
Payslips and forms#
| Document | When |
|---|---|
| Payslip | Every pay run, per employee |
| P45 | When an employee leaves; Parts 1, 1a, 2 and 3 |
| P60 | After 5 April, for everyone employed on the last day of the tax year |
| P11D | Benefits in kind for the year, with the Class 1A NI summary |
Pension auto enrolment#
The Pension page lists which employees are eligible, non eligible or entitled workers by age and earnings, holds your scheme settings, and applies the minimum 3% employer and 5% employee contributions on qualifying earnings in each run.
Directors#
- Director salary optimiser compares salary and dividend mixes against the personal allowance, the National Insurance thresholds and the Corporation Tax saving, and recommends a split.
- Director's loan account tracks money taken from or paid into the company outside salary and dividends, with the section 455 charge warning when the balance is overdrawn at year end.
- Shareholders records share classes and holdings so dividend vouchers are produced in the right proportions.
Related#
- VAT & Companies for Corporation Tax and Companies House filings.
- CIS if you pay subcontractors rather than employees.